E-Business Strategy : E-Procurement Module

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ESSAY: E-Procurement Business Module

By

Christian Uwagwuna (p09017302)

Course: E-Business

Course Code: CORP3500

Lecturer: Allan Hansen

02 December 2010

Introduction

With the advent of internet and with the proliferation of electronics devices, various e-business modules have spring up. One of such e-business modules is e-procurement. Rayport and Jaworski (2002) define e-procurement as an “online network of suppliers and service providers used by B2B for e-commerce purposes”. It also involves catalogue management, products requisition, control and approval, products delivery and exception handling, and processing of payment.

Description of e-procurement

E-procurement is a process whereby qualified and registered users of a web site can either look for sellers or buyers of goods and services. The modus of operation can be that buyers and sellers are able to fix a specific cost for the goods and services they offer or they can invites users to bid for the goods and services. Thomson and Singh (2001) suggested that e-procurement involves the sourcing of buyers and sellers, online bidding, a digital catalogue of products and services, ordering, goods dispatch notices, payments, logistics and supply chain management.

Baily (2008) identified seven main types of e-procurement as follow:

• Web-based ERP – this involves the use of internet application to create and approve purchasing requisition, placing purchase order and receiving goods and services.

• e-informing – the use of internet technologies to gather and distribute purchasing information both externally and internally.

• e-MRO – (Maintenance, Repairs and Operations) this is similar to web-based ERP and is used to order goods and services that are non-product based.

• e-tendering – the use of internet technology to request information on prices from suppliers.

• e-sourcing – using internet technology to identify new supplier for a specific product...
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